Washington, D.C– CVS Pharmacy Inc. has agreed to pay $17.5 million to settle allegations it overcharged Medicaid programs in 10 states including California.
According to the Justice Department, the settlement resulted from an investigation into claims CVS collected more than it should have from Medicaid for filling prescriptions for people who also have other insurance. Normally in those situations, pharmacies can only bill Medicaid for the amount of a patient’s co-payment.
CVS pharmacist Stephani LeFlore in St. Paul, Minnesota has been credited with bringing the allegations to the government’s attention. LeFlore will receive nearly $2.6 million under laws rewarding whistleblowers. The rest of the $17.5 million will be split by the federal and 10 state governments.
The states are Alabama, California, Florida, Indiana, Massachusetts, Michigan, Minnesota, New Hampshire, Nevada and Rhode Island.
There are CVS Pharmacy locations in both Sonora and Angels Camp.